Sunday, July 24, 2016

London could deploy a recovery plan in the fall – L’Express

“ We have the option of a fiscal response, which we will do in our own calendar around our autumn + speech + “, the amending budget presented by the government, Philip Hammond said Sunday, Chancellor of the Exchequer.

The statistics available at that time will allow London “ to reach appropriate conclusions on the need for a fiscal stimulus plan “, the official added, freshly appointed by the new First Minister Theresa May.

However, it has kept detailing what form these might take possible measures to increase public spending.

“ A new framework ” budget will in any case unveiled this fall “ to bring clarity to investors ,” insisted Mr. Hammond.

He was speaking to a handful of reporters after a two-day meeting in Chengdu (southwest China) Finance Ministers and Central Bank Governors of the G20, a haunted by meeting the risks associated with Brexit.

This evocation of a possible fiscal stimulus in London also comes in the wake of alarming publications.

The firm Markit Friday released its composite PMI index of purchasing managers for July, which reached its lowest level since April 2009, reflecting a massive contraction of private activity in the UK.

This figure “ highlights the blow to confidence (economic actors) by the uncertainty that has caused the referendum ” sealing the divorce between the United Kingdom and the European Union, commented Philip Hammond.

“ The truth is that a dose of uncertainty will remain until the conclusion of our negotiations with the EU ,” warned the minister.

London remains the master calendar to activate Article 50 of the European Treaty on EU output modalities. Once filed, the negotiations should be completed within two years, which makes possible a departure from the UK on the horizon 2019.

But Brussels and many European leaders, while agreeing to allow the government time to Theresa may, called on countries to notify “ as soon as possible ” withdrawal from the Union.

Even after this procedure, “ the uncertainty will end only when agreement is reached ” between the two parties, warned Mr. Hammond.

The decision of the UK to break with the EU “ reinforces the uncertainties ” for the global economy, warned Sunday the G20 powers, which are however considered “ well positioned ” to address the potential financial impact.